Why the Buyer Needs Title Insurance
Without a title insurance policy, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of your new property.  As a result, you may be held fully liable for any prior liens, judgments or claims brought against your new property.  However, your policy from 1st Service Title & Closing, Inc. , insures that if such an occasion arises, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.

Why Title Insurance is needed when Refinancing a Mortgage Loan
Today's lower interest rates have spurred you to refinance your mortgage.  Now you can expect to reap the benefits of substantially reduced monthly mortgage payment, but you can also expect to pay to the lender the typical closing costs associated with any mortgage loan.

From the lender's standpoint, a refinanced loan is no different than any other mortgage loan.  So be prepared for service fees or points and other expenses including a new charge for title insurance.

Title Insurance is Important When Refinancing
Why do you need to buy title insurance again even though you purchased a policy when you first bought your home and there is no change in ownership?

It's because a separate policy is needed by the lender insuring the validity of your mortgage when it is made. For as long as you won the property your mortgage is valid, but it doesn't insure the new mortgage created when you refinance, and it doesn't provide protection against events that may have transpired between the time you purchased the property and when it is refinanced.

For example, you may have taken out a second mortgage on the home that could treat the priority of the lender's mortgage.  Or, there could be legal judgments against you or a mechanic's lien against the property by a supplier who wasn't paid for home improvements.

Lenders also insist on a new title policy because many mortgages are packaged as securities and sold to investors in the secondary mortgage market.  Title insurance is the only practical way to provide than assurance investors demand and to ensure that the mortgages backing these securities are valid and enforceable.

For your refinance transaction with 1st Service Title & Closing, Inc.,  you may qualify for a special title insurance rate based on the loan amount.  There may be additional charges for recording fees, closing fees and endorsements.  Your lender can provide you with an estimate of these costs.